How To Open a Business Bank Account in the UK: Step by Step

To open a business bank account in the UK is a vital step for running your company legally and efficiently. It enables you to manage income, pay suppliers, and keep your business finances separate from your personal ones.

Here are the key steps to follow:

1. Register Your Company with Companies House

Before applying for a bank account, you must register your company with Companies House, the official company register in the UK.

Once registered, you’ll receive a company registration number, which banks use to confirm your business exists and check its structure. This step is essential.

2. Gather the Required Documents

Next step is to prepare the documents required by the bank. Typically, this includes:

• Certificate of Incorporation from Companies House
• Memorandum and Articles of Association (for limited companies)
• Proof of identity for directors and shareholders (e.g. valid passport or national ID)
• Recent proof of address (e.g. utility bill or bank statement)
• Company details, including registered address and business activity
• Tax registration number and, in some cases, previous banking references
• A business plan, particularly if the company is new or applying for credit facilities

3. Compare Bank Options

There are plenty of options in the UK, from high street banks like Barclays, HSBC or Lloyds to digital-only banks like Tide or Revolut Business. Each one has different requirements and offers various services, so it is advisable to compare fees, features, and account management tools.

Make sure to compare what they offer and check whether they allow non-resident directors or international transactions, especially if you’re based outside the UK.

4. Complete the Application

Once you have chosen a bank, you can begin the application process. Some banks allow to apply online, while others may require an in-person appointment.

During the application, provide detailed information about your company’s operations, expected transaction volumes, corporate structure, and details of directors and shareholders.

5. Prepare a Business Overview

Some banks — especially traditional ones — may request a short presentation or overview of your business. This usually includes information about your products or services, target market, and projected revenue.

This step allows the bank to assess the level of risk involved and to identify which additional services or credit facilities may be appropriate for your business in the future.

6. Application Review

After submission, the bank will review your application and documents. This includes credit checks, fraud prevention procedures, and verification of your company’s activities and source of funds.

As part of anti-money laundering (AML) and know your customer (KYC) regulations, the bank will also verify the identity of all directors, shareholders, and beneficial owners.

It is essential that all the information you provide matches the documents submitted. In some cases, you may be asked to provide original documents in person or send certified copies.

Depending on the bank and the complexity of the application, opening the account can take from a week to several months.

7. Sign the Account Agreement

Once your application is approved, you will need to sign the account opening agreement. At this stage, you can also choose additional services such as business debit cards, online banking access, and credit facilities.

Be sure to read all terms and conditions carefully before signing to avoid any unexpected fees or limitations.

8. Activate the Account and Start Using It

Finally, once the documents are signed, the bank will activate the business account. This can take from a few hours to several days, depending on the bank.

Once activated, you will receive your banking details (IBAN, sort code, and account number), along with login credentials for online banking.

9. Meet Your Tax Obligations

Once the account is open, it is important to use it responsibly and ensure it is kept in good order. Doing so will make it easier to file tax returns and produce accurate financial reports.

Maintaining clear and well-organised financial records also helps in the event of an audit or inspection by HMRC (His Majesty’s Revenue and Customs).

Final Tips

To ensure a smooth process when opening a business bank account in the UK, it is advisable to gather all necessary documents in advance and consider seeking professional legal or accounting advice where appropriate. Maintaining transparency in your financial operations is key to avoiding future problems.